Vol. 254 - United Nations Treaty Collection

358 United Nations - Treaty Series 1956
airline is a national and the country of ultimate destination of the traffic. The right to
embark or disembark on such services international traffic in passengers, cargo and mail
destined for and coming from third countries at a point or points on the routes specified
in this Annex shall be applied in accordance with the general principles of orderly development
of air transportation to which both Governments subscribe and shall be subject
to the general principle that capacity should be related :
(a) to traffic requirements between the country of origin and the countries of destination;
(b) to the requirements of through airline operation;
(c) to the traffic requirements of the area through which the airline passes after taking
account of local and regional air services.
VIII
Should a route or part of a route as mentioned in Schedule I and II to this Annex be
served by the airlines of both Contracting Parties, the airlines concerned may consult
with each other with a view to arrive at a form of co-operation on this route or part of
such route. If an agreement is reached, it shall be submitted for approval to the respective
competent aeronautical authorities.
Ix
For the purposes of the foregoing two sections, the Government of the Italian Republic
recognises the special nature of the air services between Portugal and Brazil, which
will be considered as having the same character as the services mentioned in the last
category of letter (c) of section VII of the present Annex.
X
The aeronautical authorities of both Contracting Parties shall consult at the request
of either Party with a view to ensure the compliance with such principles and the application
of such obligations as are provided for in the Agreement and in the present Annex.
XI
1. The rates to be charged in each of the agreed services shall be fixed at reasonable
levels, due regard being paid to all relevant factors such as cost of operation, reasonable
profit, characteristics of the various services and the rates charged by any other airlines
operating on all or part of the route. These rates shall be established in accordance
with the following provisions of this section.
2. Tariffs shall in principle be established by the International Air Transport
Association (IATA). In the absence of a decision taken by IATA, the designated airlines
shall endeavour to establish tariffs after consultation with other airlines operating air
services on all or part of the same route. The tariffs so determined shall be subject
to the approval of the respective aeronautical authorities.
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